Gold Price Prediction for July 24, 2017

Gold prices continued to rise on Friday, pushing above resistance which is now short term support near the 50-day moving average at 1,249.  The decline in the dollar, following the ECB’s monetary policy meeting on Thursday has given gold prices a boost. Until Draghi walks back their perceived hawkish commentary, the yellow metal will remain buoyed.

Momentum is Positive

Additional support on gold prices is seen near the 10-day moving average at 1,230.  Resistance on the yellow metal is seen near the June highs at 1,296.  Momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the spread (the 12-day exponential moving average minus the 26-day exponential moving average) crosses above the 9-day exponential moving average of the spread. The MACD histogram is printing in the black with an upward sloping trajectory which points to higher prices.